Consumer confidence rebounds in June from a six-month low

Cameron Bagrie, chief economist at ANZ National Bank

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

New Zealand consumer confidence rebounded from a six-month low in June, supported by a strong economy.

The ANZ-Roy Morgan consumer confidence index rose to 131.9 from 127.6 in May. A reading above 100 indicates optimists outnumber pessimists.

New Zealanders are feeling more buoyant on the back of a strong economy where the prospects of higher wages loom as employment increases and the cost of living is supported by low inflation, ANZ said. A report yesterday showed the economy expanded at a 3.3 percent annual rate in the first quarter, the fastest pace in eight years, while last week the Reserve Bank raised interest rates for a third time and signalled more hikes ahead.

"Sentiment is very solid under the bonnet," ANZ Bank New Zealand chief economist Cameron Bagrie said in a note. "That's an incredibly healthy sign; amidst rising interest rates there are wider influences that are supporting confidence."

The current conditions index rose to 127.5 from 123 last month as households felt better off financially compared to a year ago and still considered it to be a great time to buy a major household item. The future conditions index increased to 134.9 from 130.7 as those expecting good economic conditions in New Zealand over the next 12 months rose to a net 37 from a net 30 last month.

"All measures - headline sentiment, current and future conditions - are well north of the 100 benchmark, something of a breakeven mark for wallets being opened," Bagrie said "At these levels, wallets are not only open; the credit card is in hand."

Expectations of inflation remained unchanged from last month at a 21-month low of 3.1 percent.

Household sentiment strengthened in four of the five regions and was topped by Wellington to reach its highest level since January 2007. Meantime, confidence eased marginally in Canterbury, drifting down to a five-month low.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6503 0.0025 0.39%
AUD 0.9027 0.0002 0.02%
EUR 0.5785 0.0024 0.42%
GBP 0.4217 0.0014 0.33%
HKD 5.0401 0.0194 0.39%
JPY 78.7880 0.3760 0.48%

Commods

Commodity Price Change Time
Gold Index 1124.6 -0.390 2015-08-27T00:
Oil Brent 47.6 4.420 2015-08-27T00:
Oil Nymex 42.6 4.310 2015-08-27T00:
Silver Index 14.4 0.380 2015-08-27T00:

Indices

Symbol Open High Last %
NZX 50 5634.9 5688.3 5634.9 0.75%
NASDAQ 4761.1 4818.7 4697.5 2.45%
DAX 10271.3 10383.0 9997.4 3.18%
DJI 16285.5 16666.7 16285.5 2.27%
FTSE 5979.2 6212.5 5979.2 3.56%
HKSE 22424.4 22424.4 21838.5 1.18%
NI225 18908.7 19061.5 18574.4 2.22%